All Forum Posts by: Ryan Evans

Fair enough about the zip. They are in 44119 and 44110. There are plenty of comps to support $150 and I very clearly stated that I, along with a business partner are the owners. Based on your comments, it sounds like you're NOT interested. 

I'm looking to sell a portfolio of 11 cash flowing units in Cleveland, all near the 44119 area code. It consists of 5 duplexes and a single house. 

To get this out of the way, owner financing will not be considered. This is a cash out deal to put money into other investments.

The portfolio is consists of properties owned separately between myself and a business partner. I'm still getting the details together, but high level numbers are going to look something like this:

Duplexes between $140k-$170k

Single Family Home: $50k-65k

All up we're looking at somewhere in the range of $750k-$900k. 

Rents are between $750-925/unit and have not been raised to market rate. 

My goal here is to see if there is a portfolio buyer out there who's serious and interested in talking prior to listing the properties more formally. I'm not really interested in selling these individually at the moment.

If you're able to do a clean deal and save us the hassle of listings and commissions, let's talk! 

I'm also open to chatting with realtors who have portfolio buyers or those with experience listing residential property portfolios.

Cheers,

Ryan

What kind of properties are you looking for? A lot of people are still trying to buy high cash-flow duplexes for 60k, when those days are long gone. I mean, you can still buy them, but with the rehab needed you're often going to break even at best. There are bidding wars in Cleveland for good rental properties now, at least in the sub-100k markets. You can still buy solid SFR's and duplexes in the 100-150k range, but that's not why everyone comes here.

@Duncan Winecoff I don't have any personal experience, but I've been doing a lot of research into building unique properties to turn into a STR. I keep coming across one in particular in my area, Ohio, that your post made me think of. It's been in tons of blogs, articles, and such because it's one of the top STR's in the state. It's an old converted barn on a property that I think the owners live in.

Look up "magical barn amherst ohio" and you'll see what I"m talking about. It's a bit much, but prooves the concept in a way. The trick with this sort of thing seems to be to make it really unique. No generic white cabinets and grey paint, but make a space that only exists in one place, your backyard!

That's awesome things are going well thus far. I think you're on the right track with the "kill them with kindness" approach. Do what you can to not be at odds with the neighbors. After all, most guests will be just fine, though you'll have the occasional booking that causes a nuisance. That's also something you don't want. It's shouldn't be you vs the neighbors, it should be you and the neighbors vs any obnoxious guests. If they know you're running a business but are doing everything you can to respect their privacy, they'll get over it. If they know they can come to you with legitimate complaints about bad guests and you actually do something about it, then hopefully you'll be on good terms once everyone gets used to the situation. 

@Cade Stone if you have a lender lined up that will give you 10% down on a non-owner occupied property, then be sure to hold onto them! Though, if you don't actually have a lender in place, be aware that the majority of lenders won't lend under 15-20% down on properties that you're not going to live in. Sure, there are ways to get around the rules, but generally speaking, if you're going to go into a deal knowing it's going to be a rental property then you're going to have to put more down. It's easy and often misleading to make COC returns look great on low-down loans, but just know that it's not always the reality.

Also, if the area you're looking in is cracking down on STR's, it's not a bad idea to find a property that would at least break even in the event that short term rentals became illegal/unprofitable in the coming years. That way you've got an exit or hold strategy in place as a backup. Good luck!

You haven’t really done real estate until you’ve installed a “boob” or two. If you’re guilty like me, you might also get some mild entertainment out of this brief narrative I found on Youtube about “Why ‘Boob Lights’ Are So Terrible.”

Are they the best $10 you can spend or a disgrace to property renovation? I’d say both. What do you think? 

Video link here

If anything, establishing a team in a city where you don't live in is the real challenge. If you make the move to a new city you'll have to put the time in to test people out and do some networking, but you know the business so you should know exactly where to put the focus to be up and running before long. 

It's going to largely depend on the market. Build costs are going to be in a certain range no matter where you are, but the market value can vary widely. You can easily spend $200-300 per square foot for residential construction. Though, you just have to weigh it up with the lot cost and the market value. 

You really don't need an agent if you're door knocking. You can just go straight through a title/escrow company, but I'd recommend you additionally get a real estate attorney on your side to make sure everything is moving along in your favor. I've dealt with a lot of incompetent title agents where I've had to correct their issues that could have caused major issues after/at closing. 

For reference, mattorney handles the whole transaction for around $1,500.